New Delhi: For the first time in an over four years old bribery case involving technology solutions provider Cognizant, names of three Larsen and Toubro (L&T) executives have emerged recently in a filing before a US court.
According to the filing at a New Jersey court made earlier this last month by the defence counsel of Gordon Coburn, the former chief operating officer of Cognizant, L&T Ltd’s chief executive officer (CEO) SN Subrahmanyan was “formally interviewed” in Singapore on 21 May 2018 by officials from the US Attorney’s Office and FBI.
Coburn, who resigned from Cognizant in October 2016, has sought the court’s approval for the statements given by Subrahmanyan and two other L&T executives to be admitted as part of the defence evidence.
The next hearing in the case is scheduled for October 2.
The bribery case surfaced in 2016, when it was alleged that Cognizant executives had bribed Chennai Metropolitan Development Authority (CMDA) and some other government officials to obtain various permits and approvals for construction of its campuses in Chennai and Pune.
In 2016 itself, a case was filed against Coburn in the US over alleged financial irregularities.
US agencies after their initial investigation into the case claimed that the Cognizant paid a sum of $3.64 million in bribes to Indian government officials to obtain various permits and approvals for construction of its campuses in India between 2013 and 2015.
It came to fore that L&T allegedly facilitated the payment of the $3.64 million bribes on behalf of Cognizant Technology Solutions Corp to secure permits, ranging from environmental clearance to power, at the New Jersey-based company’s campuses in Chennai and Pune. However, L&T has refuted the claims.
“During the KITS project (Knowledge Industry Township in Chennai), Subrahmanyan was the head of Total Construction (division) and handled 60% of the operations of L&T. Ramamoorthy, the US government’s cooperating witness, stated that Subrahmanyan was involved in approving the improper payment by L&T to the Indian government official. Subrahmanyan is central to the facts of this case,” media outlet Mint quoted a court filing dated August 3 as saying.
After the scam surfaced in 2016, Ramamoorthy Srimanikandan, a former executive of Cognizant who was responsible for managing the company’s real estate projects in India, is helping US investigative authorities, the media outlet reported.
“Upon questioning by the government, Subrahmanyan contradicted Ramamoorthy’s testimony. Subrahmanyan stated that he does not remember discussing the planning permit with Ramamoorthy and that he did not hear anything about a request from a government official for improper payment,” said the filing.
Meanwhile as the proceedings continue in the US court, the Vigilance & Anti-Corruption Cell in Vellore filed an FIR into the matter and booked four officials from the L&T (both former and present) including Subramanian, the L&T’s current CEO of L&T; two former officials of Cognizant India; both the companies and unknown officials of CMDA and Housing and Urban Development Department.
Apart from Subramanian, the FIR mentions the names of R Srimanikandan (who was referred as Ramamoorthy in the US court filing), the then VP (Administration) & Real Estate Officer of Cognizant India; T Sridhar Thiruvengadam, former COO of Cognizant India, Chennai; V Ramesh, former construction division head of L&T, Chennai; K Kannan, former business unit head of L&T, Chennai; MV Sathish, former Executive VP and Head Building and Factories, L&T, Chennai.
Interestingly, Ramamoorthy, who is a witness in the US case is named as an accused in India.
The FIR states that R Srimanikandan (Ramamoorthy) and T Sridhar Thiruvengadam conspired with V Ramesh of L&T to bribe the officials of CMDA and others to get planning permit approvals for the construction of largest buildings for Cognizant in KITS project in Sholinganallur in Chennai.
According to the FIR, the L&T started construction of large campuses for Cognizant India in Chennai, way before proper permissions were obtained from the concerned government departments.
The FIR further states the permissions were only obtained in June 2014, while the construction started way back in 2011.
Cognizant India applied for a planning permit to CMDA in February 2013, after a lapse of 8 months, the file was sent to the Government for approval. The file was then sent to the then Minister for Housing and Urban Development in November 2013, after a lapse of another 8 months, the approval was finally obtained in June 2014. By then L&T had already completed 40% construction of the Campus.
The vigilance cell also recovered a host of e-mail communications between officials of L&T and Cognizant India and also those with Gordon Coburn, which corroborated the alleged scam.
It was stated in the FIR that Cognizant and L&T officials paid a bribe to the tune of Rs 12 crore to the unknown government officials in the CMDA and Housing and Urban Development ministry. The same amount as approved by Gordon Coburn in the name of ‘Architectural Enrichment’.
Ramamoorthy was reached out for an interaction however he preferred to mention that matter is sub-judice and he cant comment as of now. He wanted reporter to call back after a month or so and he will be able to share all details. Ramamoorthy was specifically asked that he is supporting investigations in USA and is cooperating with the authorities having done nothing wrong than how come he is an accused in India, Ramamoorthy did confirm that he has done nothing wrong however he will be able to share full details post a month or so. Ramamoorthy was not willing to reveal his role and roles of other entities/individuals accused in the FIR.
